Getting dealers license illinois

Any demonstration movement shall be limited to a period of 3 days. Each dealer who wishes to grant to a prospective bona fide buyer the use of a dealer plate on a one-trip cargo carrying demonstration for three days shall prepare a document identical to this form in duplicate, and retain one copy in the office of the dealer and issue one copy to the user for display on the vehicle.

Each dealer shall file an annual report listing the name of each prospective buyer permitted to make a demonstration trip with a vehicle identifying the plate number utilized and the dates that the demonstration trip began and ended. The Secretary of State may prescribe the form of such report.

The Secretary of State may, in addition, grant in his discretion, a pen-nit for a one-trip demonstration in excess of 3 days upon application therefor and showing of good cause. Illinois law requires that all dealers keep complete records on each vehicle bought or sold. These records are required to be kept in a bound ledger Police Book or electronic data processing system,. Licensees who do not maintain electronic data processing record-keeping systems shall maintain, for three years, the necessary information in a bound ledger book of a double entry type to be titled as follows:.

Licensees who maintain their records in an electronic data record keeping system shall maintain, for three years, the required information. These records shall be accessible as follows:. The records now required to be kept by licensees with the exception of scrap processors include:. If it is determined that this has happened the vehicle should not be acquired and law enforcement authorities must be promptly notified.

Over the past few years, Illinois laws have become more specific in identifying what is meant by "essential parts" or parts that must be tracked through the system. Essential parts include the following:. By law, an essential part which does not have an identification number affixed by manufacturer as a means of identification shall adopt the identification number of the vehicle to which it is affixed, installed or mounted. To track the life of these essential parts, the parts are required to be recorded on a form called the "Uniform Invoice.

Each will retain a copy of the "Uniform Invoice" for each transaction. Every essential part must indicate a VIN number, including the essential parts brought in from other states. Insurance companies paying a total loss claim must apply for a salvage certificate.

Abandoned vehicles or vehicles with possessory liens by commercial relocators that are subsequently sold at a public auction can only be issued either a salvage certificate if it is seven years of age or newer or a junking certificate if it is eight years of age or older. IADA has developed a legal form which is available to protect dealers who take in trades that may be salvage or rebuilt vehicles.

IADA Form A salvage vehicle can either be rebuilt by a licensed rebuilder or salvaged into parts. A junk vehicle can be disassembled into parts or crushed or otherwise disposed of.

A junk tided vehicle can never receive a title which will allow it to be registered in Illinois. A rebuilt salvage vehicle can be registered upon completion of appropriate inspection. In order for this to happen, the licensed rebuilder the only entity who can legally apply must take the vehicle to a Secretary of State inspection station and have the vehicle physically inspected before a REBUILT title can be issued.

The purpose of these inspections is to identify stolen "essential parts" and to inspect all ownership documents. The inspection is not intended to certify the safety or road-worthiness of the vehicle or the quality of the workmanship. Under Illinois Law, the Secretary of State requires separate licenses for the following types of business: new and used vehicles dealers, rebuilders , repairers, used parts dealers, and scrap processors. Finns who are involved in two or more of these operations will need two or more of these licenses.

IADA exempted new vehicles dealers from the necessity of obtaining a separate Repairers license. Listed below are the Secretary of State's definitions of various types of businesses in the vehicle repair industry. A person who is in the business of returning a vehicle for which a salvage certificate has been previously issued back to its original or operating condition.

A person who is in the business of returning a vehicle other than a vehicle for which a salvage certificate has been issued back to its original or operating condition by restoring, mending, straightening, replacing, altering, or painting essential parts. Automotive parts recycler.

A person who is in the business of acquiring previously owned vehicles and vehicle parts for the primary purpose of disposing of parts of vehicles in a manner other than that described in the definition of a "scrap processor".

Scrap processor. A person who purchases any material which may have been a vehicle or essential part of processing into a form other than a vehicle or essential part, for remelting purposes only, who from a fixed location utilizes machinery and equipment for processing or manufacturing ferrous or nonferrous metallic scrap into prepared grades, and whose principal product is metallic scrap. No scrap metal processor shall sell a vehicle or essential part, as such, unless licensed to do so under another provision of the Vehicle Code.

Dealer Licensing Requirements. A statement from each manufacturer, stating that a franchise has been awarded to said corporation.

Such policy should not expire any sooner than December 31st of the year for which the license is issued. Additionally, because motor vehicle dealers collect Illinois sales tax , you need to meet the taxation and licensing requirements set out by the Illinois Department of Revenue DOR. You work as an agent, broker, or intermediary for a licensed dealer or purchaser.

Apply for Your Dealer License There are a few different steps involved in the application process for an Illinois dealer license, including: Requesting your required application materials. Contact SOS at for information on registering for a class. The notice of proper zoning. A copy of the city business license is sufficient for car dealerships in Chicago. The steps you'll need to follow will include:. There are a few special considerations to know for dealerships without lots.

If you're planning on displaying vehicles for sale at your home, check local laws first. There may be a limit on how or where you can display them. You'll also still need to list a place of business on your paperwork.

This should be where your records are kept. Whether you have a lot or not, getting a surety bond is essential for becoming a licensed dealer. If you're not sure exactly what a surety bond is, don't worry—many people aren't quite sure at first.

Check out our page on What Is a Surety Bond? Basically, a surety bond serves as a guarantee that your business won't engage in unethical conduct. That can include everything from misrepresenting a vehicle's condition to not paying sales taxes.

You'll pay a percentage of this upfront to the surety and then file your certification with your dealer application. Although dealer surety bonds usually require credit checks, keep in mind that Surety Bonds Direct can help you even if your credit isn't perfect.

Plus, we offer flexible payment plans to make bonds more affordable for our customers. We work directly with leading national surety bond companies to give our customers the most competitive rates and the best customer service so that your business can grow, flourish and expand.